Financial Transaction Tax A Step Nearer


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These idiots running the EU have absolutely no idea what they are doing with this ludicrous tax and it is a step closer after Britains legal challenge to it was rejected.

Here is the report:

BRUSSELS (Reuters) - Europe's highest court rejected on Wednesday Britain's legal challenge to the introduction of a financial transactions tax (FTT) in Europe, dealing a blow to London's efforts to stop a levy that may hit its financial services.
In the ruling, the European Court of Justice said Britain could not at this stage block an attempt by 11 countries to impose the levy on the grounds that it would also hit trades involving banks or brokers in London.
The countries that signed up to the project, it said, had yet to decide how the tax will work.
"The Court dismisses the United Kingdom's action," the court said in a statement. "The Court finds that the contested decision does no more than authorise the establishment of enhanced cooperation, but does not contain any substantive element on the FTT itself."
The judgement is symbolically important and comes after the same court dismissed a separate challenge by Britain to a law on banning the short-selling of shares earlier this year. Britain has also challenged new EU rules to curb banker bonuses.
Although the defeat is potentially embarrassing for Britain, government lawyers believe that it nonetheless lays down an essential legal marker that will enable it to launch further legal challenges to the project.
Experts said that Britain may have more success if it challenges the tax later.
"Once the tax has been worked through, then that is when the UK needs to step in and challenge any extra-territorial elements of that tax," said Chas Roy-Chowdhury, head of tax at ACCA, an international accounting body. "That is when I think they could win if the tax is not modified quite drastically."
London is Europe's top trading centre. Financial services account for about a tenth of the British economy.
Ultimately, the unsteady coalition behind the tax may play more to Britain's advantage than any legal challenge. The reservations of some countries are set to lead to a dramatic scaling back of the scheme.
(Reporting By John O'Donnell and Huw Jones; editing Robin Emmott, Larry King)


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These idiots running the EU have absolutely no idea what they are doing with this ludicrous tax and it is a step closer after Britains legal challenge to it was rejected.

Here is the report:
Wherever this form of taxation has been introduced in the past (Sweden?) it has always resulted in a net reduction in tax revenues and eventual removal of the tax. That the administrators in Brussels seem not to heave learnt from others' mistakes is no surprise - it's always going to be different 'this time'.

It'll also be another angle for Farage to use and possibly the Tory anti-EU brigade. The fact that it's implementation is many years off, if at all, is something that should give us some comfort. As should be the sure knowledge that methods of evading it if and when it is introduced will be devised. Tobin himself said although the tax was logically sound, it would be technically infeasible to implement its collection, but I suspect technology has moved on sufficiently to nullify that issue.

It is being seen as an attack on London's preeminence as the centre of trading for the EU which it may well be. I don't suppose the US will be too unhappy either.

Should just about be able to fit Canary Wharf into St. Helier or even Douglas at a push. But what would the lads spend their bonuses on there?
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